Is Enphase Energy, Inc. overvalued or undervalued?

As of 22 July 2025, the valuation grade for Enphase Energy, Inc. has moved from expensive to fair, indicating a shift in its perceived value. The company appears fairly valued based on its current metrics, with a P/E ratio of 30, a Price to Book Value of 6.66, and an EV to EBITDA ratio of 21.72. In comparison, its peer, which has a P/E of approximately 24.23 and an EV to EBITDA of 17.55, suggests that Enphase is in line with industry valuations, albeit slightly higher.
Despite its fair valuation, Enphase has experienced significant stock declines, with a year-to-date return of -44.03% compared to a positive 12.22% return for the S&P 500. Over the past year, the company's stock has decreased by 67.90%, while the S&P 500 has gained 17.14%, highlighting a stark underperformance relative to the broader market.